Auto-Enrolment: 25 FAQs for Employers

*Please note that this page was last updated on 8 January 2026

Auto-Enrolment in Ireland is now live, following its launch on 1 January 2026. This new pension savings scheme, called My Future Fund, affects hundreds of thousands of employers and employees across the country. While the goal is to simplify retirement savings, the rollout brings new responsibilities and questions for businesses.

To help you prepare, we have gathered the 25 most frequently asked questions from our Auto-Enrolment webinars with the Department of Social Protection (DSP) and from conversations with our customers.

Auto-Enrolment is a government initiative designed to increase private pension savings. Under the scheme, eligible employees will be automatically enrolled in a workplace pension plan, with contributions made by the employee, their employer, and the State. The scheme will be administered by the National Automatic Enrolment Retirement Savings Authority (NAERSA), responsible for identifying eligible employees, collecting contributions, and managing investment funds.

An employee will be automatically enrolled into My Future Fund if they:

• Are aged between 23 and 60

• Earn €20,000 or more per year across all their jobs

• Are not already contributing to an employer – sponsored pension scheme through payroll

Employees who do not meet these thresholds can opt in. Self-employed individuals, including Class S directors, are not eligible in the initial phase.

An employee’s combined earnings from all jobs are used to determine if they meet the €20,000 annual income threshold. If eligible, they will be auto-enrolled for each job where they are not already in a pension scheme, and each employer will pay contributions based on the gross pay they provide. Employers do not need to track employees’ other jobs — NAERSA will manage this using Revenue payroll data.

Contribution rates are phased in over 10 years:

These apply on gross pay up to a maximum of €80,000 per year. Employer contributions are deductible for corporation tax.

Yes. All employers operating in Ireland are required to implement Auto-Enrolment for eligible employees, regardless of their size or sector.

No. At the initial launch, there are no exemptions for smaller employers. All employers must comply with Auto-Enrolment regulations, although phased contribution rates are designed to help businesses of every size adjust.

If an employee is already contributing to a pension scheme through payroll, they will not be auto-enrolled for that employment. Any level of contribution is sufficient for exemption. However, if your scheme has a waiting period, employees may be auto-enrolled into My Future Fund during that time, with contributions stopping once they join your company’s scheme.

Yes. Employees who are younger than 23, older than 60, or earning less than €20,000 can opt in voluntarily to My Future Fund.

Not in the initial phase. The scheme currently applies only to PAYE employees. Self-employed individuals, including Class S directors, are not eligible at launch.

Yes, but only after a six-month mandatory period. After that, there is a two-month window (months seven and eight) to opt out and receive a refund of their own contributions. Employer and State contributions remain in their pension pot. Employees who opt out are re-enrolled every two years if still eligible. Suspensions of contributions can be requested after the initial period.

If an employee leaves your company and moves to another eligible employer, their pension pot remains with NAERSA. The new employer will begin making contributions automatically if the employee is still eligible. Manual transfers are not needed.

Each employer will pay contributions based on the pay they provide, as eligibility is assessed on total earnings from all jobs. Coordination is managed by NAERSA using Revenue payroll data.

Yes, provided they meet the age and earnings thresholds. Employers should regularly review eligibility for all staff, regardless of their contract type.

Employers should ensure their payroll software is compliant with Auto-Enrolment requirements and is fully updated ahead of implementation. Robust payroll systems will streamline calculations and reporting, reducing admin errors.

Yes. Advanced payroll software like BrightPay offers Auto-Enrolment tools — including automatic processing of enrolment instructions, precise contribution calculations, generation of contribution files, and compliance alerts — all designed to minimise manual effort and risk of errors.

*Click here to join our BrightPay demo where we showcase its auto-enrolment functionality.

Government may review and update contribution rates and qualifying limits periodically. Employers are responsible for keeping up with NAERSA announcements and adjusting payroll systems as needed.

Employers that fail to meet their Auto-Enrolment obligations — such as not paying contributions or attempting to pressure employees to opt out — will face fines and penalties. Any underpaid or withheld contributions will accrue interest.

Employers must keep accurate records of employee eligibility, enrolment status, contributions made, and any opt-out or suspension requests. These should be retained for the duration specified by NAERSA for compliance checks.

Employer contributions are generally deductible for corporation tax purposes. Payroll systems should accurately report both employer and employee contributions on payroll submissions and tax returns to maintain compliance.

The employer must correct the error as soon as possible, including paying any underpaid amounts. In cases of significant or repeated errors, employers should consult NAERSA for guidance.

Employers should be ready to respond to common questions about eligibility, contribution rates, and scheme operations. Providing written guidance, FAQs, presentations, or directing employees to NAERSA’s official resources can help staff feel supported and informed.

NAERSA will offer information, webinars, and customer support throughout the rollout. Employers are encouraged to engage with these resources and attend training or informational events.

At Bright, we’re preparing a range of resources to help the Irish public and our BrightPay users understand the new Auto-Enrolment legislation. To help you get ahead, we are hosted two exclusive webinars:

1. Auto-Enrolment with IPASS: Watch back our session where Ireland’s leading payroll training provider, IPASS, provide a comprehensive session on Auto-Enrolment.

2. BrightPay Auto-Enrolment Demo: Watch back this webinar to see our Auto-Enrolment functionality in action and learn how BrightPay can simplify your compliance.

Yes, employers may run separate pension schemes or provide enhanced benefits beyond those required by Auto-Enrolment. If employees participate in such a qualifying scheme, they may be exempt from the State system.

Auto-Enrolment commenced on the 1st of January 2026. Contribution rates will phase in over a 10-year period to allow businesses and employees to adapt comfortably.

More detailed information is available on the DSP’s website and YouTube channel. Alternatively, check out our Auto-Enrolment landing page to browse our resources.

This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.